HX Pharma

Date of Prospectus: October 9, 2025

Bold Bet on Future Growth: HX Pharma’s Landmark Hong Kong IPO Targets R&D, Innovation, and Market Expansion

IPO Snapshot: Key Terms and Offering Structure

HX Pharma, a commercial-stage pharmaceutical innovator, is launching its Hong Kong IPO with bold growth ambitions, a diversified product pipeline, and major investment in research and development.

• IPO Symbol: 2637 (Main Board, Hong Kong Stock Exchange)
• Offer Price Range: HK\$69.88 – HK\$86.40 per H Share
• Number of Shares Offered: 11,500,000 H Shares (Global Offering)
• Post-IPO Shares Outstanding: 78,707,270 H Shares
• Expected Market Capitalization: HK\$5.50 billion – HK\$6.80 billion
• Expected Net Proceeds: Approximately HK\$848.0 million (mid-point price)
• Offer Period: October 9–14, 2025 (Application deadline: October 14, 2025, 12:00 noon)
• Listing Date: October 17, 2025 (Trading begins 9:00 a.m. Hong Kong time)

Use of Proceeds: Fuelling Innovation and Market Expansion

HX Pharma’s IPO proceeds are earmarked for aggressive growth and R&D leadership:

• Continuous R&D investment: HK\$441.0 million (52%)
• R&D capacity building and strategic collaborations: HK\$195.0 million (23%)
• Commercialization and market expansion: HK\$67.8 million (8%)
• Optimization of R&D and manufacturing systems: HK\$59.4 million (7%)
• Working capital and general corporate purposes: HK\$84.8 million (10%)

This allocation signals a growth-driven strategy focused on expanding product pipelines, accelerating commercialization, and strengthening operational infrastructure [[36]][[448]].

Placement Breakdown and Cornerstone Commitment

• Hong Kong Public Offering: 1,150,000 H Shares (10% of total offering, subject to reallocation)
• International Offering: 10,350,000 H Shares (90% of total offering)
• Cornerstone Investor: Harvest Oriental (HARVEST INTERNATIONAL PREMIUM VALUE (SECONDARY MARKET) FUND SPC, acting for HARVEST ORIENTAL SP)
• Cornerstone Investment Size: US\$22 million (HK\$ equivalent), securing up to 21.31% of the Offer Shares (depending on final price), with a 6-month lock-up period
• Pre-IPO Investors: Eight institutional investors, collectively holding 32.01% post-IPO, subject to a one-year lock-up

Investor Participation and Book Quality

Cornerstone and pre-IPO support is robust:

• Harvest Oriental’s US\$22 million commitment secures a significant portion of the offering, signaling institutional confidence in HX Pharma’s prospects.
• Eight pre-IPO institutional investors (including Zhanhongda Investment, Jindonghong Capital, and Hongrang Investment) collectively holding 32.01% post-IPO, with all special rights terminated and lock-ups in place [[30]][[223]].

These allocations and lock-ups may restrict short-term liquidity, but book quality suggests strong demand and potential price stability at listing, given the notable anchor investment and tight institutional participation.

Deal Parties, Underwriting, and Structure

• Joint Overall Coordinators: Huatai Financial Holdings (Hong Kong) Limited, CMB International Capital Limited, SDICS International Securities (Hong Kong) Limited
• Joint Bookrunners and Lead Managers: Same as above
• Joint Sponsors: Huatai Financial Holdings (Hong Kong) Limited, CMB International Capital Limited, SDICS International Securities (Hong Kong) Limited
• Underwriting: Conditional on Offer Price agreement; includes Hong Kong and International Underwriting Agreements
• Listing Expenses: HK\$50.6 million (5.6% of gross proceeds at mid-point price)

Stabilization and Over-allotment: The overall coordinators may reallocate shares between tranches based on demand, with up to 15% reallocation allowed for the Hong Kong Public Offering in case of oversubscription [[466]][[467]].

Reputation and Roles: The presence of multiple leading investment banks and a blue-chip cornerstone investor positions the IPO for a supported listing-day performance.

Company Overview: Business Model, Portfolio, and Market Position

HX Pharma operates as a commercial-stage pharmaceutical company integrating R&D, production, and sales. Its diversified product portfolio and pipeline targets the largest and fastest-growing therapeutic areas in China, including:

• Digestive system diseases
• Cardiovascular system diseases
• Endocrine system diseases
• Nervous system diseases
• Inflammatory diseases

As of the latest date, its commercialized portfolio consists primarily of generic drugs, while the innovative pipeline includes candidates for oncology, among other indications [[11]].

Industry Size: These therapeutic areas accounted for over 25% of China’s pharmaceutical sales in 2023.

Financial Health: Multi-period Performance

Key Takeaways: HX Pharma demonstrates strong profitability, high gross margins, and healthy liquidity, indicating solid financial health and operational efficiency [[34]].

Market Position and Competitive Strength

• Competitive Advantage: Diversified pipeline across high-growth therapeutic areas
• Market Share: Therapeutic areas represent over 25% of China’s pharma market
• Brand and Innovation: Strong focus on R&D and product innovation

Management Team: Key leaders include Dr. Kang (executive director, deputy GM), Ms. Feng Yan (executive director), with deep sector experience. Full details available in the company’s disclosures [[46]].

Industry Trends, IPO Timing, and Market Environment

Sector Trends: China’s pharmaceutical industry is rapidly expanding, driven by sustained demand in chronic and complex diseases. Innovative and generic drugs remain major growth drivers.

IPO Timing:

• Offer Opens: October 9, 2025, 9:00 a.m.
• Offer Closes: October 14, 2025, 12:00 noon
• Listing Date: October 17, 2025

Market Environment: The prospectus highlights a stable macro outlook and favorable regulatory support for pharmaceutical listings, with no material adverse changes since May 31, 2025 [[442]].

Recent Developments: HX Pharma completed CSRC filings under the new regime, successfully converted Unlisted Shares to H Shares, and secured cornerstone support [[126]].

Conclusion on Market Conditions: The timing aligns with sector momentum and robust institutional interest, signaling a constructive environment for the IPO.

Risk Factors: Quantified Exposures and Mitigations

Key Risks Identified:

• Regulatory risk: Potential penalties or restrictions from PRC authorities may impact operations or repatriation of proceeds [[116]].
• Market risk: No guarantee of an active trading market; liquidity may be restricted due to cornerstone and pre-IPO lock-ups [[117]].
• Financial risk: No dividends declared to date; future payouts not assured [[35]].
• Operational risk: Reliance on major partners, suppliers, and customers; competitive threats persist [[61]].
• Lock-up risk: Pre-IPO investors and cornerstone allocation restrict free float, potentially impacting trading volume [[229]].
• Bookbuilding risk: Offer price may be reduced if demand falls short; reallocation mechanisms in place but may affect pricing [[470]].

Growth Strategy: Expansion, Innovation, and Partnerships

• Continuous R&D investment to advance drug candidates and enrich product portfolio
• Expand R&D capacities and pursue collaboration opportunities (HK\$195 million earmarked)
• Enhance commercialization and expand market presence (HK\$67.8 million)
• Optimize manufacturing systems and operational infrastructure
• Strategic use of proceeds for working capital and proactive market entry

Pre-IPO proceeds were fully utilized for business expansion, R&D, and working capital [[223]].

Ownership Structure and Lock-ups: Institutional Commitment and Float

• Pre-IPO Investors: 32.01% post-IPO holding, subject to one-year lock-up
• Cornerstone Investor: Up to 21.31% of Offer Shares, six-month lock-up
• Public Float: 26.72% (exceeds HKSE minimum requirements)
• Promoter and shareholder lock-in: Six months for controlling shareholders, additional six months if control would be lost [[456]]

Valuation Benchmarks

• Market Capitalization: HK\$5.50 – HK\$6.80 billion
• Pro Forma Net Tangible Asset per Share: HK\$18.53 – HK\$20.87 (post-IPO, based on offer price range)
• No formal dividend policy or payout ratio; future dividends are at Board discretion [[35]].

Listing Outlook: Value Proposition and Trading Prospects

Based strictly on disclosed data, HX Pharma’s IPO appears worth subscribing for investors seeking exposure to China’s high-growth pharmaceutical sector, innovation, and R&D leadership.

• Cornerstone and institutional investor support signals confidence and may stabilize first-day trading.
• Financial metrics (high margins, solid ROE, strong cash flows) point to operational robustness.
• Lock-ups may restrict short-term liquidity but could support price stability.
• Offer Price Range: First-day trading is likely to be strong, with the price expected to remain at or above the offer price, given the quality of the book and anchor commitments. A trading range of HK\$70–HK\$86 per share is reasonable based on disclosed subscription and allocation mechanisms.

Prospectus Access

The official prospectus and related documents are available at: www.hkexnews.hk and https://hxpharma.com

How to Apply for HX Pharma IPO Shares

• Application Channels: Online via HK eIPO White Form (www.hkeipo.hk), or through HKSCC EIPO channel via brokers/custodians participating in the HKSCC FINI system
• Application Window: October 9–14, 2025
• Eligibility: Applicants must be 18+, have a Hong Kong address (for White Form), and not be existing shareholders or close associates of directors/supervisors

No physical application channels are provided; the process is fully electronic.